Government sets Director ID deadline
- Business News
- Managing a Business
Current company directors have until 30 November 2022 to apply for their Director identification number as part of the Federal government’s plan to prevent illegal phoenixing.
Failure to register for the ID within the allocated time frame could result in fines of over $1.1 million for non-compliance.
“While most businesses work hard to do the right thing, a small number look for ways to avoid paying their debts. Some may intentionally wind up or liquidate, then start a new company to continue the same business activities without the debt. This is called phoenixing and it’s illegal.”
australian taxation office – protect yourself from phoenixing
The new laws will see close to 2.5 million directors required to apply for their unique identification number which they will keep permanently, even if they are no longer a director in the future.
Applications for a Director ID are free and will open on November this year on the Australian Business Registry Services (ABRS) platform.
Directors appointed from 5th April 2022 will be required to apply for their Director ID before commencing the position.
“All directors of a company, registered Australian body, registered foreign company or Aboriginal and Torres Strait Islander corporation will need a director identification number (director ID).”
Australian business registry services
What you need to do
Directors must apply for their Director ID themselves, requiring the following forms of Identification along with their myGOV ID.
Identification documents include:
- Bank account details
- Superannuation details
- ATO notice of assessment
- Dividend statement
- Centrelink payment summary
- PAYG payment summary
As well as other key Australian identity documents such as birth certificates, drivers licence, passport or Medicare card.
To find out more on your requirements as a Director, contact Elevate Accounting HERE to book your obligation free chat.
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